Adam Comsof Ltd. (ADAMCOMSOF) - Auditors Report

Company auditors report

ADAM COMSOF LIMITED
ANNUAL REPORT 2002-2003
AUDITORS' REPORT
To,
The Members of
Adam Comsof Limited
1. We have audited the attached Balance Sheet of ADAM COMSOF LTD., as at
30th June, 2003 and Profit and Loss Account of the Company for the year
ended on that date, annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements, based on our audit.
2. We conducted our audit, in accordance with auditing standards, generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes, examining on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by the management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
3. As required by the Manufacturing and other Companies (Auditor's Report)
Order 1988, issued by the Company Law Board, in terms of Section 227(4A) of
the Companies Act, 1956, we annex hereto a statement on the matters
specified in the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:
a) We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by the Companies
Act, 1956 have been kept by the Company so far as it appears from our
examination of such books.
c) The Balance Sheet and Profit and Loss Account dealt with by this report
are in agreement with the books of account.
d) In our opinion the Balance Sheet and Profit & Loss Account, comply with
the Accounting Standards referred to in Sub-Section(3C) of Section 211 of
the Companies Act, 1956.
e) Based on the representations made by all the Directors of the Company
and the information and explanation as made available, Directors of the
Company do not have any disqualification as referred to in clause (g) of
sub-section(1) to section 274 of the Act.
f) In our opinion and to the best of our information and according to the
explanations given to us, the said Balance Sheet and the Profit and Loss
Account read together with the notes give the information required by the
Companies Act, 1956 in the manner so required and gives a true and fair
view:
i. In the case of Balance Sheet, of the state of affairs of the Company as
at 30th June, 2003.
ii. In the case of the Profit and Loss Account, of the profit of the
Company for the year ended on that date.
For V. SUBRAMANIAN & CO.
Chartered Accountants
Place: Mumbai V. Subramanian
Dated: 5th December, 2003 Proprietor
Annexure to the Auditors' Report
(Referred to in para (1) of our report of even date)
1. The Company is maintaining proper records showing full particulars,
including quantitative details and situation of fixed assets. As explained
to us all the assets have been physically verified by the management during
the year. In our opinion the frequency of verification is reasonable. No
material discrepancies were noticed on verification.
2. None of the fixed assets have been revalued during the year.
3. Physical verification of stock has been conducted by the management at
reasonable intervals. In our opinion, the frequency of verification is
reasonable.
4. The procedures of physical verification of stocks followed by the
management is reasonable and adequate in relation to the size of the
company and the nature of its business.
5. No material discrepancies were noticed on physical verification of
stocks.
6. The valuation of stocks is fair and proper and is in accordance with the
generally accepted accounting principles and is on the same basis as in the
previous year.
7. As per information available to us, the company has not taken loans,
secured or unsecured from firms or other parties listed in the register
maintained under Section 301 of the Companies Act, 1956 or from the
companies under the same management as defined under sub-section(1B) of
section 370 of the Companies Act, 1956.
8. As per information available to us, the Company has granted loans to
Companies, firms or other parties listed in the register maintained under
Section 301 of the Companies Act, 1956 or to the companies under the same
management as defined under sub-section(1B) of Section 370 of the Companies
Act, 1956. The terms of such loans are not prima-facie prejudicial to the
interest of the company.
9. Interest free loans or advances in the nature of loans have been given
to companies in the course of business at terms which are not prima facie
prejudicial to the interests of the Company. The interest free loans to
employees are being repaid as per stipulated terms.
10. In our opinion and according to the explanations given to us, there is
an adequate internal control procedures commensurate with the size of the
Company and the nature of its business, for purchase of stores, plant and
machinery, equipments and other assets.
11. In our opinion and according to the information and explanations given
to us, there were transactions of sale of goods, materials and services,
made in pursuance of contracts or arrangements required to be entered in
the register maintained under section 301 of the Companies Act, 1956 and
aggregating to Rs.50,000/- (Rupees fifty thousand only) or more in respect
of each party. These transactions have been made at prevailing market
prices or the prices at which transactions for similar goods and services
have been made with other party.
12. The Company has a system of determining unserviceable or damaged
stores, raw material and finished goods on the basis of technical
evaluation and in our opinion, adequate provision for the loss has been
made in the accounts.
13. The Company has accepted deposits from the public within the meaning of
Section 58A of the Companies Act, 1956 and the company has complied with
the provisions of this section and the rules framed thereunder and also the
directives of the Reserve Bank of India.
14. In our opinion, the Company has adequate internal audit system
commensurate with its size and nature of its business.
15. The Central Government has not prescribed maintenance of cost records
under section 209(1)(d) of the Companies Act, 1956.
16. According to the records of the Company, Provident Fund dues have
generally been regularly deposited during the period with the appropriate
authorities.
17. According to the information and explanations given to us, no
undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax,
Customs Duty and Excise Duty as at 30-06-2003 were outstanding for a period
of more than six months from the date they became payable.
18. According to the information and explanations given to us, and the
records of the Company examined by us, no personal expenses have been
charged to revenue account, other than those payable under contractual
obligations or in accordance with generally accepted business practice.
19. In the case of trading activities of the Company, damaged goods have
been accounted as per prudential accounting practices.
20. In our opinion, the Company's system of allocating man-hours utilised
to the relative jobs considering the size and nature of its business needs
to be strengthened.
21. The company is not a sick industrial company under the meaning of
section 3(1)(O) of the Sick Industrial Companies (Special Provisions) Act,
1985.
22. The provision of clause 4(A)(xiv) is not applicable to the company.
For V. SUBRAMANIAN & CO.
Chartered Accountants
Place: Mumbai V. Subramanian
Dated: 5th December, 2003 Proprietor